There Are Three Seats Open on the Board of Directors

question 371

Multiple Choice

There are three seats open on the board of directors of ABC, Inc. Ann owns voting shares of ABC common stock. If ABC uses cumulative voting, the maximum number of shares that Ann can vote
For any one position is equal to:

• A) The number of open seats.
• B) One-third of the number of shares owned.
• C) The number of shares owned.
• D) Three times the number of shares owned multiplied by the number of open seats.
• E) The number of seats open times the number of shares owned.

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Definitions:

Paying Wages

The act of compensating employees for their labor, typically calculated by hours worked or tasks completed.

Office Equipment

Non-consumable items used in an office setting for administrative or operational purposes, such as computers, printers, and furniture.

Measurement (Cost) Principle

An accounting principle that states assets and liabilities should be recorded at their original cost and factually supported values.

Acquired Building

A building that has been purchased or obtained by a company or organization through purchase or other means of acquisition.